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Published 22 May 2025

Budget reduces investment in innovative research

Today's budget announcement signals annual reductions to the Marsden Fund of approximately $5 million per year over the 3 years from the 2026/27 financial year.


These cuts follow changes last year in which the Government disestablished the Marsden Fund’s dedicated support for social sciences and humanities research, and specified that its investments should support research designed to generate economic, environmental, or health benefits for New Zealand, with at least half focused on economic benefits.

The Minister for Science, Technology and Innovation, Hon Dr Shane Reti, has shared his vision for a better-connected research system that delivers new products and services, builds resilience for the future, and improves the lives of everyday New Zealanders. Money has been reallocated within the sector from research funding, including the Marsden Fund, Strategic Science Investment Fund, and Health Research Council, to enable the restructure of the science system, including establishment of new entities such as the Gene Technology Regulator, the Prime Minister’s Science, Innovation and Technology Advisory Council, and the three Public Research Organisations.

Professor Gill Dobbie, Fellow of the Royal Society Te Apārangi and Chair of the Marsden Fund’s Council, says: “The Marsden Fund incentivises New Zealand’s researchers to pursue excellent curiosity-driven research that will benefit New Zealand and New Zealanders over the long term. Funding for interdisciplinary research that generates new ideas should not be considered a cost — it’s a smart, strategic investment that lays the foundation for a better, more prosperous future. We will continue to urge the Government to renew its investment in excellence and innovation across all subject areas.”

Distinguished Professor Dame Jane Harding DNZM FRACP FRSNZ, President of the Royal Society Te Apārangi, says: “We acknowledge that this Government is focused on financial prudence in the context of global economic uncertainty. However, these budget cuts come at a time when New Zealand needs innovation, critical thinking, and evidence-based solutions more than ever. We call on the government to recognise the long-term value of research.” 

Paul Atkins, Chief Executive of the Society, adds: “We are concerned that the costs of the restructure will effectively reduce the amount available for active research projects. The capability of our research sector has taken years to build up, and we risk losing talented, knowledgeable, and highly skilled experts.”

“Investment in both fundamental scientific research and social sciences and humanities research has the potential to lift productivity, create high-value jobs, diversify economic activity, and boost competitiveness in global markets. It would also help Aotearoa New Zealand to attract and retain talent, meet our global commitments, adapt to a complex and changing world, and improve outcomes for education, healthcare, social wellbeing, and the environment.”

 

Source: Royal Society Te Apārangi